Asian oil product markets diverge: diesel and jet fuel under pressure and softening, fuel oil crack spreads retreat, gasoline and naphtha trading remains subdued

智通财经2026/08/21 13:46

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The Asian diesel market saw a slight uptick in trading activity during the Friday window, but refinery sales slowed, the inter-month price spread weakened, and the jet fuel-to-diesel spread continued to widen, reaching its deepest level in five months, reflecting a deterioration in the middle distillates' internal structure.
The diesel crack spread declined for the second consecutive trading day, closing near $71 per barrel, a one-week low. The spot price spread further narrowed to about $4.5 per barrel, remaining within a one-month low range, despite a higher-priced trade occurring in the window.
Jet fuel spot trading increased compared to a week ago, with several Korean refineries completing sales of late September cargoes. Price negotiations covered a wider range, with later-loading cargoes priced at close to a $1 per barrel discount. The jet fuel-to-diesel spread widened to $5 per barrel, the largest discount since the end of March.
The spot premium for very low sulfur fuel oil continued to decline, with the hi-5 fuel oil spread falling for the third straight week. The September contract closed around $119 per ton, down about 13% week-on-week. The very low sulfur fuel oil crack narrowed to below a $18 per barrel premium, while the high sulfur fuel oil crack dropped to around a $0.75 per barrel discount.
The gasoline market remained sluggish, dragged down by cautious expectations for the regional supply-demand fundamentals. The paper inter-month spread further softened, and no trades were done in the window for the fourth consecutive trading day. The 92-octane gasoline crack closed at around $21 per barrel, down nearly $2 from last week.
Naphtha market buying was somewhat slow, with some buyers still deliberating over their October procurement plans. The crack spread edged up to about $138 per ton, and reforming margins remained firm at around $23 per barrel. No gasoline or naphtha transactions were concluded in the trading window.

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Asian oil product markets diverge: diesel and jet fuel under pressure and softening, fuel oil crack spreads retreat, gasoline and naphtha trading remains subdued

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